If you have taken out a loan or a credit card within the last couple of years then you will probably have heard of payment protection insurance. Sadly, millions of people every year are wrongly sold payment protection insurance. When this happens, you are entitled to claim for compensation. Luckily, you may be able to get compensation as well as interest on a wrongly sold policy. Unfortunately, some people do not know where to start when it comes to claiming compensation. There are two ways of doing this, but one is more favourable than the other.
Before putting in a claim you need to find out if you have been wrongly sold a policy or not. If you do want your money back then you have to have proof that the policy that you purchased was not right for you. There are a few things that could indicate that you have. One thing that you need to think about is whether or not the policy that you purchased was explained to you fully. It is not uncommon for ppi to be sold without it being explained in the slightest. Another thing that happens very often is the wrong policies being sold to the wrong people. There are many other things that could mean that you have been mis sold ppi, these are just two things that could have happened to you.
As mentioned earlier, there are two things that you can do if you have reason to think that you have been mis sold a payment protection insurance policy. One option available to you is to take on the company who sold you the policy and try to get compensation yourself. It could be hard to prove that you have been wrongly sold a policy and it can often take a long time. The other option that you have is to contact a claims company. The good thing about these companies is that they take the whole headache of reclaiming ppi away from you. The majority of companies in this field will no charge you a fee up front so if they don’t win, you don’t pay.
Simplicity Claims deals with these payment protection insurance claims for its customers and doesn’t charge a fee unless they successfully win the case on your behalf. So really, there’s nothing to lose financially by applying through their ppi claims website and seeing if you qualify to get your money back.
If you don’t know what payment protection insurance is then you should probably take some time to find out as there’s a fair chance you’re paying for it without realising. If you’re currently paying off a loan or mortgage, then chances are there’s PPI attached and you may not need to be paying it. If this is the case then you’ve probably had it sold to you wrongly and you may stand to claim back a large amount of money.
Payment protection insurance offers borrowers the opportunity to ‘secure’ there loan by having it insured by the lenders themselves. This means that if, due to ill health or loss of work, the borrower finds themselves unable to pay back their loan – the lenders will either help with the payments or pay them off altogether.
Great though that sounds, the reality is that you could most likely find much better value for money from an outside source or independent insurance company – up to 70% better value in fact. In many cases this is actually how the loans companies make their profit, and wouldn’t stand to gain from the loan without the PPI. Furthermore, the policies provided by lenders are often useless to most people – with those who are retired or unemployed ineligible to claim. Despite this many loans companies will still sell them PPI, making it money down the drain for the customer and profit for the lender. Claims are also refused for those who have previous illnesses or those claiming for back problems or stress. In fact one in five claims on PPI are unsuccessful making it hardly a prudent investment for most individuals and leading to a lot of recent controversy surrounding the issue.
If you think it’s possible you have been missold PPI then try to find your original policy documents to find out exactly what you agreed to. You stand a good chance of making a successful claim if you were ineligible to make claims under the policy at the time of signing up, or if the bank didn’t clearly state the terms of the PPI. Often you will find that representatives selling PPI will simply call it a ‘fully protected’ loan without specifically stating that it’s PPI. If you signed up online however that could damage your chances as details were probably available.
Your chances of success are also increased however if many others have made successful claims against the company in the past. With the current controversy surrounding PPI your chances are at an all time high so it’s worth getting in touch with a well worded letter.
Don’t be put off by initial rejections however, and keep sending letters until you manage to get the response you want. Many companies will send you an automated response to begin with or try and talk their way out of the situation. If you continue to complain however and word your letters well, perhaps threaten to involve the media, they will eventually have to take notice – it’s just a matter of time.
If however you don’t want to go through the whole process on your own, or don’t feel confident to write a professional sounding ppi complaint, you can involve a claims management company who will deal with the lender for you, making the whole process hassle free.